This follows the completion of the merger with EONCAP Islamic Bank on Nov 1, said HLISB CEO Raja Teh Maimunah Raja Abdul Aziz.

"Like in any merger, there will be streamlining of operations, support services, and infrastructure for synergies of productivity and efficiency," she said in a statement today.

Hong Leong Bank group managing director and CEO Yvonne Chia said the scheme will also provide an opportunity for employees who have expressed their desire to opt out early for various reasons such as to further their studies, and pursue other business or personal ventures.

"It provides an opportunity for both the employees as well as the bank for mutual benefit,” she said, adding that the response so far has been encouraging with employee applications from all levels.

Hong Leong Bank’s Human Resources Division has issued a letter to the National Union of Bank Employees (NUBE) on Nov 14, informing them of HLISB’s proposed VSS plan.

“There was a genuine error in the letter to NUBE stating that Bank Negara Malaysia (BNM) and the Labour Department’s approvals were being sought. We wish to clarify that as a matter of course, we have informed all relevant authorities, including BNM and the Labour Department on the VSS. HLISB’s VSS is the second phase of the exercise.” said Chia.

The scheme is open to all full-time employees of the newly-enlarged Hong Leong Bank and MIMB Investment Bank Bhd, which is now also part of Hong Leong Bank Group.